Shiba Inu (SHIB) Price Surges 10% Amid Strong Whale Purchase, What’s Next?

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As an experienced crypto investor who has closely followed the Shiba Inu (SHIB) project since its early days, I find the recent whale activity and price surge intriguing. The sudden buying spree from a significant whale, as highlighted by Spot on Chain, is a clear sign of confidence in SHIB’s potential.

Shiba Inu (SHIB) has followed the trend of other altcoins in the cryptocurrency market’s recent surge. Consequently, the price of SHIB has risen by 10% over the past 24 hours. Notably, a dormant “early adopter” or large SHIB holder, often referred to as a “whale,” has become active again after almost three years, purchasing an enormous amount of 323 billion SHIB tokens within hours.

Shiba Inu (SHIB) Whale Accumulation

A noteworthy whale’s recent actions on the blockchain monitoring platform Spot on Chain drew attention. This particular address acquired a massive amount of 167 billion SHIB tokens in April 2021, about eight months following Shiba Inu’s initial launch, from one of the earliest and most active whales associated with SHIB.

When I came across Spot on Chain’s report, I noticed that a significant investor had bought approximately 149.3 billion SHIB using around $3.83 million worth of Wrapped Ethereum (WETH). After the report was released, this whale continued to invest, purchasing an additional 173 billion SHIB.

An early buyer-linked whale just swapped 1K $WETH ($3.83M) for 149.3 $SHIB in the past hour!
I analyzed the transaction history of the whale’s Shiba Inu ($SHIB) holdings, and I discovered that three years ago, they sold a large amount of $SHIB tokens worth approximately $6.13 million at that time. These tokens were originally acquired from an early buyer who purchased a staggering 5.16 trillion $SHIB back in March, using just 45 Ether ($63,700) as payment.
— Spot On Chain (@spotonchain) June 5, 2024

After completing 2,188 WETH transactions in just three hours, the large investor now holds an impressive 323 billion Shiba Inu tokens, valued at approximately $8.29 million. At present, this whale has refrained from selling or distributing any of these tokens, retaining a substantial balance within their holdings.

SHIB Price Crosses Crucial Resistance

From a researcher’s perspective, as of the current moment, the value of Shiba Inu (SHIB) stands at an approximately 9.53% increase to $0.00002616. Its market capitalization exceeds $15.4 billion. Additionally, daily trading volumes have experienced a significant surge of around 16%, reaching over $763 million. A notable factor contributing to this upward trend is the escalating Shiba Inu (SHIB) burn rate, which may potentially cause further price growth.

Significantly, the Shiba Inu (SHIB) token has surpassed its 50-day Exponential Moving Average (EMA) at $0.000025. Yet, this achievement doesn’t automatically signal an uninterrupted upward trend for SHIB. To sustain the uptrend, SHIB must transform the previous resistance level of $0.00003 into a support level. If it fails to do so, there’s a risk that the price could slide back below the 50-day EMA.

As a crypto investor, I’ve noticed that pushing the price of SHIB up to $0.00003 might be tough due to a large sell wall present at this level. According to IntoTheBlock’s data, around 124,220 addresses hold approximately 92.2 trillion SHIB tokens, which they bought between $0.000025 and $0.00003. These investors might choose to sell their tokens if the price reaches this level, potentially flooding the market and preventing further price increases.

Shiba Inu (SHIB) Price Surges 10% Amid Strong Whale Purchase, What’s Next?

At the price of $0.00003, these holders typically recoup their investment, generating increased supply and putting pressure on Shiba Inu to prevent it from surpassing this level. For Shiba Inu to accomplish a successful breakout above $0.00003, there needs to be a rebound in buying activity that can counterbalance the selling pressure.

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2024-06-05 11:16